Why Turkish Investors Are Abandoning Housing for Gold

The traditional “safe haven” of Turkish real estate is facing a historic crisis as surging gold prices and record-high interest rates reshape the investment landscape. For the first time in years, property prices in some regions are dropping below 2024 levels, leaving the housing market in a state of near-total stagnation. Sector representatives warn that the era of buying homes for profit has effectively come to a halt.

Property Values Dip Below Last Year’s Records

Real estate expert Kasım Karakaş highlights a shocking trend for 2026: property prices are not just flat—they are retreating. Homes valued at 4 million TL last year are now struggling to find buyers, even at 3.5 million TL. This downward pressure is a direct result of global geopolitical tensions that have pushed gold prices to record highs, drawing capital away from the brick-and-mortar sector.

The Rent vs. Interest Rate Trap

Investors are increasingly turning to liquid assets rather than physical property. The math for potential buyers no longer adds up:

• The Opportunity Cost: A 3 million TL deposit in a high-interest bank account can yield 80,000–90,000 TL per month.

• The Reality of Rent: The same 3 million TL property barely fetches 20,000 TL in rent, making it an unattractive option for wealth building.

“Nobody is buying for investment anymore,” Karakaş notes, explaining that the market is now limited to “necessity buyers”—those who absolutely must move for personal reasons rather than financial gain.

Rental Market Defies Inflationary Pressure

Despite an official inflation rate of 34%, the rental market is cooling. Landlords, fearful of losing reliable tenants or facing long vacancies, are opting for minimal increases or keeping rents steady. In many cases, effective rental rates have fallen below levels seen two years ago. With uncertainty expected to persist until the end of the year, the real estate sector remains in a “wait and see” mode.